EDC Foreign Exchange Facility Guarantee
No fixed amount
Loan Guarantee
Description:
EDC’s Foreign Exchange Facility Guarantee (FXG) can cover your collateral requirements on foreign exchange (FX) contracts, helping you manage fluctuating currency rates without tying up your cash.
Comments on Funding:
With a Foreign Exchange Facility Guarantee, your financial institution has up to 100% coverage on your FX contract, so additional collateral is no longer required.
Continuous Intake
Eligibility:
Applicants must be:
1. Be a registered Canadian company that meets our definition of an exporter.
2. Have a business banking relationship with a Canadian financial institution.
3. Meet certain environmental, social and governance standards and other non-financial criteria.
4. Have (or be considering) an FX contract or other hedging instrument with your financial institution.
Application Steps:
Applicants must:
1. Get in touch. Contact EDC or your financial institution to see if an FXG is a good fit for your business. Be prepared to discuss your growth plans.
2. Review your FX strategy. EDC will work with you to review your hedging strategy and the terms of your financial institution’s FX facility agreement (if you have one).
3. Set up an FXG. EDC and your financial institution will work together to finalize the guarantee process.
Documentation Needed:
No specific documentation has been identified
Other Things to Note:
About the author
Maurice
